As pointed by A, the 14, 21, 31 EMA continued supporting the 2nd board index, being the dynamic support; and the 2nd board index closed 0.56 of a point higher to 96.51 points. Since the 2nd board index is still being supported by the dynamic support, we could not see any bearish signal yet. Nevertheless, if the 2nd board index was to continue its uptrend, it must first break above the 97.69 immediate resistance successfully with significant increase of volume.

Volume for the 2nd board index remained lower on Tuesday, with the volume staying below 40 days VMA level. This suggested that the overall participation of the 2nd board market is still relatively lower. Therefore, if the volume remained below the 40 days VMA level, the 2nd board index is likely to stay sideways. (Study B)

On Tuesday, the MACD histogram stopped falling, and might be forming a rounding bottom signal. If the Histogram rose and formed rounding bottom successfully, it shall be the signal suggesting an end to the technical correction, and the short-term movement for the 2nd board is likely to stay upside bias. (Study C)

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